Paramount Extends Skydance Offer Review Period

Paramount's special committee announced on Wednesday an extension of its "go shop" period by 15 days as it evaluates a competing offer from Edgar Bronfman Jr. Initially, Bronfman proposed a $4.3 billion bid for Shari Redstone's National Amusements, the controlling shareholder of Paramount. However, he later revised his offer to $6 billion, prompting the committee to extend the period until September 5, 2024, to allow for further consideration. The original merger agreement with Skydance included a 45-day "go shop" period, during which Paramount could seek alternative offers. The committee stated that it had reached out to over 50 potential buyers during this timeframe. However, the extension applies solely to the Bronfman Consortium, while the "go shop" period for other interested parties will conclude by midnight on Wednesday. The Skydance consortium, which includes private equity firms RedBird Capital Partners and KKR, has committed over $8 billion to acquire Paramount and National Amusements. Under this agreement, National Amusements is valued at $2.4 billion, with $1.75 billion in equity. Shareholders of Paramount would receive $23 per share in cash or stock for class A shares and $15 for class B shares, totaling $4.5 billion for public shareholders. Bronfman, a former executive at Warner Music and Seagram, has been involved in various ventures, including his role as executive chairman of Fubo TV since 2020. The details of his bid were first reported by The Wall Street Journal.